The problem

Our firm is in the IT services sector and has been hit hard by the credit crunch. We have had to streamline our in-house recruitment team to make cost savings and are under pressure to focus on our return on investment. We need to look at our hiring processes to see how we can drive down the cost per hire. The HR team will be smaller, with a reduced recruitment budget, so will have to work smarter. What practical actions can we take to achieve this?

We do not envisage staff numbers growing this year but we still have a recruitment programme to replace existing jobs. Owing to budget cuts we are now limited in the salaries we can offer new staff, but we want to ensure we continue to hire the most talented people. How can we attract the best with less attractive salaries than our competitors? We are also keen to retain existing talent without being able to offer staff a pay rise this year. What methods can we use to encourage them to stay with us through these tough times?

The advice
Sean Gallagher, director, IT Comms Sector Group, Recruitment & Employment Confederation

One way of cutting costs is to reduce your existing supplier base by forming a closer relationship with fewer recruiters. You might find that some are open to lowering their fees if you agree to use them exclusively or, alternatively, come to an arrangement about the volume of opportunities you put their way.

You should be looking at which of your current suppliers are most successful and form a closer relationship with them to build on this success. If you agree to give more business to a certain supplier or a smaller number of suppliers, they are more likely to agree to take on some of your HR department’s work and ease the burden on your workforce, but this can only be achieved through a strong partnership.

It’s not only about driving cost out of the initial recruitment process. You’re more likely to attract and retain staff if you offer lifestyle options and benefits, such as flexible working, pensions and training. If you work for a smaller firm, you might want to consider offering EMI-compliant share option schemes or, if you are a medium or large firm, a profit sharing or share save scheme. Again, depending on your sector you could look at the opportunity to enhance staff diversity. For example, some organisations have made significant strides forward in securing employee loyalty by offering junior apprenticeships or jobs to older workers.

Caroline Griffiths, HR manager UKI, Cisco

During difficult times, don’t be tempted to sit still. Planning for the future helps to demonstrate your commitment to existing talent and will strengthen relationships for when the situation picks up. Staff are at the heart of any businesses and encouraging passion, engagement and motivation will be a primary factor in retaining your top talent.

Encourage employees to take ownership of their own career development. My organisation has a number of initiatives in place, such as round-table discussions, mentoring and development forums, that not only expose staff to some of our key business leaders to ask them how they have achieved success, but also provide an opportunity for staff to talk through their personal and professional development at Cisco. They give a chance to explore career decision options and how to achieve them.

Nurturing a culture of feedback and accounting for each individual’s growth will help to establish loyalty between staff and the business. Interactive sessions can highlight new ways to support career aspirations. A good example of an initiative we have in place is an online forum which our staff can use to share their thoughts and make comments. In some cases, these ideas get taken up as projects for further development.

We often ask staff to work on ad-hoc projects that allow them to be involved with generating new business ideas. This is also another way of demonstrating that you are willing to listen to their views, and possibly their concerns, especially during “difficult times”.

Ensuring you have such procedures in place to support your staff will help you gain their loyalty. By showing you’re willing to invest in their long-term career aspirations, you are more likely to retain your top talent for the future, not merely the short term.

Harry Stancliffe, head of sales at IT job board PlanetRecruit

For most IT companies, recruiting staff still represents one of their biggest expenditures, so driving down cost per hire will be an essential way to survive these difficult times.

Given that IT professionals were among the first to embrace job-hunting on the internet, it makes sense for IT companies to go online to reach this niche audience. In turn, niche jobsites that only advertise IT positions can ensure that businesses deal only with relevant candidates, saving both time and money. Online recruitment is also transparent so businesses can see exactly how their recruitment budget is being spent and the success rate for placements – this ability to measure is increasingly important in the current economic climate.

Salaries are important to attract the top talent – but many of our customers are now realising the value of using microsites and employer pages to show the training and lifestyle benefits that they can offer. These benefits can be a big attraction for candidates and can help give companies an edge in a highly competitive market.